I don't mean to beat a dead horse, but are there any issues why we should not do this? Equitable interest maybe? Difficulty in evictions?

I don't like that idea, Steve. If there is a problem with the tenant down the road, I'm sure some attorney will seize on that "Earnest Money" notation and use it against you in some fashion.

I couldn't agree more with this and yes, MC's right I've had it done to me and it ain't fun. The thing to consider is the word "consideration" vs anything that remotely sounds like the word "equity". And Earnest Money sounds an awful lot like it's heading in that direction.

I don't even like the word rent credit actually. After having fun in court, I now use consideration on everything. This proves there's no equitable interest whatsoever.
Hope that helps,
Adam

Thanks for the replies. Best to keep it a landlord/tenant relationship and not muddy the waters.